Boeing workers reject latest offer as company says it is losing tens of millions every day | Money news

Boeing employees have rejected a recent 35% wage hike and committed to further strikes as the company faces massive losses and delivery delays.

Up to 33,000 workers at Boeing plants in Washington state, Oregon and California have rejected a proposal to increase wages by just over a third over four years, as their union said: “After ten years of sacrifice, we “There’s still a lot of catching up to do.”

Just hours earlier, the plane maker published results showing huge losses of $6bn (£4.6bn) in just three months, partly due to industrial action as it dealt with the fallout from a plane crash Door blown away its Alaska Airlines 737 MAX in January and its accompanying aircraft Delivery delays.

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The cost of machinist work stoppages is estimated to be tens of millions of dollars per day. An analyst at Aubrey Capital Management, Anna McDonald, puts the figure at a daily cost of $100 million for the company.

It's that second offer rejected by members of the International Association of Machinists and Aerospace Workers (IAW) union. Negotiations would be resumed “in a timely manner,” it said.

What does the union want?

The rejected offer included a one-off bonus of $7,000 (£5,390), as well as the retention of performance bonuses, which Boeing wanted to cut, and additional pension contributions.

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Left out was the reinstatement of a defined benefit pension plan that was frozen a decade ago and was a priority for many union members.

Employees are trying to “make up for nearly a decade of stagnant wages and many setbacks that were part of previous negotiations,” the IAW said. “Their strike will continue and the union said it plans to immediately provide the company with new dates for further negotiations.”

What is happening at Boeing?

Boeing, one of the U.S.'s largest exporters, has struggled with regulatory oversight Component malfunctions.

The new managing director Kelly Ortberg announced earlier this month Loss of 17,000 jobs – 10% of its workforce.